Identify and explain four forms of netting

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1. Identify and explain the primary methods of managing credit risk for derivatives dealers.

2. Identify and explain four forms of netting.

3. Interpret the following statements about Value at Risk so that they would be easily understood by a nontechnical corporate executive:

a. VAR of $1.5 million, one week, probability ¼ 0.01

b. VAR of $3.75 million, one year, probability ¼ 0.05

Reference no: EM13925677

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